What Is A Comparative Market Analysis?

by Sundaybell on January 21, 2011


Get a CMA BEFORE selling your home

Get a CMA BEFORE selling your home!

The real estate business is littered with big and sometimes incomprehensible terms! For example, when selling a home, chances are that you’ll be advised to do CMA (Comparative Market Analysis). A CM-what you say? In the world of real estate, a CMA is not a certified management accountant but a Comparative Market Analysis. A CMA is an analysis of your home in order to establish its market value. Or, in layman’s terms, it’ll tell you approximately how much you can expect to get if you’re thinking of selling a home.

A comparative market analysis can range from a short document made up of a couple of pages listing comparable home sales to a full-scale comprehensive report consisting of over 50 pages! Needless to say, if you’re thinking of selling a home, a detailed report will give you a more exact idea of what you can expect to get.

What Information Is Used To Put Together A CMA For Someone Selling A Home?

A CMA will generally be drawn from 5 factors:

  1. Active Listings: homes that are currently for sale. The list prices of these homes aren’t really indicative regarding market value, though, because buyers can ask for whatever they want.
  2. Pending Listings: these are homes that are under contract but the sale hasn’t gone through yet. Therefore, they are no longer active but chances are slim that you’ll get any information about what price they sold for until the paperwork is through.
  3. Sold Listings: these are houses that have sold within the last 6 months and are your true comparable sales, when selling a home. If a potential buyer has your home appraised, these are the sales a home appraiser will be looking at.
  4. Off-Market, Withdrawn or Cancelled Listings: these are homes that were taken off the market for a variety of reasons. A couple of examples would be the DOM being too long or a case of seller’s remorse.
  5. Expired Listings: these are homes, which simply haven’t sold, probably due to an unreasonably high asking price.

If you’re thinking of selling a home and have done a CMA, pay close attention to the comparable sales from the Sold Listings category and look for homes that are most similar to yours in terms of size, age, amenities and location. Also keep in mind that a CMA is an analysis; it is not the same thing as a home appraisal!


{ 6 comments… read them below or add one }

Ben Fenlon January 23, 2011 at 6:19 pm

Great video clip! Not often do Realtor’s describe this aspect of their job and it is a big part of what we do daily. Full-time Realtors that REALLY know the market and can guide and advise their clients accordingly while genuinely work in their clients best interest, are an incredible asset to the buyer client or the seller client they represent. Ben Fenlon, Sales Representative with Royal LePage Real Estate Services Ltd., Brokerage.

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Sundaybell January 26, 2011 at 9:43 pm

Thanks Ben, we really appreciate your commentary on our real estate blogs. As I’m sure, you’ve likely already taken a look at the services Sundaybell will be providing to the real estate industry. Real estate professionals are very important and it’s important that wether buying or selling, a real estate professional is engaged with the client.
We hope that you visit often. Also, please feel free to follow us on facebook or twitter as we’ll be keeping the industry abreast of our official launch date.
Good luck and keeping up the great service!
Sundaybell

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Anonymous January 25, 2011 at 10:45 am

Great information! I’ve been looking for something like this for a while now. Thanks!

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Sundaybell March 7, 2011 at 4:26 pm

Glad we could help. When buying, selling or evaluating your current real estate investment, it is important to know where you stand. For this type of information or other real estate related information, come back often.

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review March 20, 2011 at 2:01 pm

Super blog, please add some new articles, can’t wait!

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Sundaybell March 28, 2011 at 7:42 pm

Thank you for your comment. At Sundaybell we’re always keeping up on the latest news and hot topics in Real Estate. For more information pertaining to Real Estate, the Real Estate Industry and Professionals that can help, please visit us often.

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